Understanding Succession and Legacy Planning

Succession and legacy planning go beyond drafting a will; they involve creating a strategic framework for transferring your wealth, values, and responsibilities to the next generation or chosen beneficiaries.  

As you accumulate assets or approach the later stages of life, it becomes increasingly important to ensure that your estate is managed and distributed according to your wishes.  

Every adult should have a basic estate plan that includes a will, durable powers of attorney for finances and healthcare, and a healthcare directive or living will. These documents ensure that someone you trust can make important decisions if you’re incapacitated and that your medical wishes are respected in critical situations. They also provide legal clarity that can help minimize confusion or conflict among family members. 

Beneficiary designations on accounts such as IRAs, 401(k)s, and life insurance policies take precedence over instructions in a will, so it’s important to review and update them regularly. These updates are particularly essential after life changes, such as marriage, divorce, or the birth of a child. 

In addition to a will, many individuals benefit from establishing trusts. Revocable living trusts, for example, allow assets to pass outside of probate and offer more control, privacy, and continuity in the event of incapacity. They’re especially helpful for those who own property in multiple states or have blended families.  

Irrevocable trusts can provide tax and asset protection benefits, but because of their permanent nature, they require careful planning and professional guidance.  

For high-net-worth individuals, minimizing estate taxes is another key consideration.  Strategic lifetime gifting — such as using the annual gift tax exclusion or making direct payments for education or medical expenses — can help reduce taxable estates while allowing individuals to witness the impact of their generosity.  

Business owners also face unique succession challenges that require long-term planning. Whether transferring ownership to family, selling to employees, or exiting through a third-party sale, it’s important to plan early. Planning includes valuing the business, exploring tax-efficient transfer options, and developing capable successors. In addition, tools like buy-sell agreements and key-person insurance can help preserve value and ensure continuity. Family-owned businesses must also address potential tensions among heirs, especially when some are involved in the business while others are not.  

Open communication is essential to effective succession planning. Families that engage in structured discussions about intentions, values, and responsibilities are better prepared for transitions. These conversations often include financial education for heirs, the establishment of family governance protocols, and regular reviews of the succession plan to ensure alignment with current circumstances and laws. 

Summer is a great time to revisit your financial goals and make sure your plans are working for you. Whether you’re just starting or looking to strengthen your current strategy, focusing on essentials like preparing for the future can make a big difference. 

But navigating all of that alone can be overwhelming — which is where trusted financial advice comes in. A skilled advisor can help you clarify your priorities, tailor a plan to your life, and adjust along the way as things change. That kind of guidance turns good intentions into confident, forward-moving action — and that’s what builds long-term financial resilience. 

To understand your next steps in succession and legacy planning, reach out to a team member using the form below.  

Adapted from: “Understanding Succession and Legacy Planning.” FMeX. 2025.  https://abm.emaplan.com/ABM/MediaServe/MediaLink?token=1af88642d0e64762a0d46b9fe3f49e4e